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Last Updated on: 22 December, 2024
Author: Getaka|Social: Getaka Financial Technology X (Earlier Twitter) Profile Getaka Financial Technology LinkedIn Logo
Stock Ticker - BSE: 540900 | NSE: NEWGEN

Newgen Software Technologies Ltd: Fundamental Analysis, Share Price Insights & Intrinsic Value (2024)

Share Price and Basic Stock Data

Last Updated: December 21, 2024, 2:07 am

Market Cap 22,083 Cr.
Current Price 1,574
High / Low 1,629/626
Stock P/E80.4
Book Value 86.2
Dividend Yield0.25 %
ROCE26.6 %
ROE22.7 %
Face Value 10.0
PEG Ratio4.88

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for

Competitors of

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
I Power Solutions India Ltd 6.41 Cr. 14.4 14.4/9.79 8.990.00 %3.67 %3.83 % 10.0
Hypersoft Technologies Ltd 7.47 Cr. 17.6 17.6/7.00 5.130.00 %8.57 %10.7 % 10.0
Nucleus Software Exports Ltd 2,790 Cr. 1,042 1,830/1,03717.8 2681.20 %32.0 %24.0 % 10.0
Newgen Software Technologies Ltd 22,083 Cr. 1,574 1,629/62680.4 86.20.25 %26.6 %22.7 % 10.0
Mphasis Ltd 55,960 Cr. 2,951 3,240/2,18035.1 4581.86 %24.0 %18.4 % 10.0
Industry Average110,804.13 Cr845.5428.42141.390.68%20.17%16.60%6.90

All Competitor Stocks of

Quarterly Result

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Sales145169186211168202235283224264299350283
Expenses125127131147150169179191196212227232242
Operating Profit204355641833569228527211841
OPM %14%25%30%30%10%16%24%32%12%20%24%34%15%
Other Income1077610797128111422
Interest1111111111111
Depreciation4444466666677
Profit before tax264557642233599232537612455
Tax %25%23%20%12%15%19%22%16%15%18%14%18%23%
Net Profit193546561927467727446510142
EPS in Rs1.392.483.264.011.351.933.275.511.943.124.667.223.02

Last Updated: September 28, 2024, 4:34 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: September 28, 2024, 4:34 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024TTM
Sales1902342793133834605525776107118881,1361,195
Expenses151192226274318365433484431529690867913
Operating Profit40425338659411994180181198269283
OPM %21%18%19%12%17%21%22%16%29%26%22%24%24%
Other Income913938820211430334655
Interest11235581153444
Depreciation4344566181915232627
Profit before tax44515534639112586170193204284307
Tax %17%17%22%17%24%22%23%23%31%19%18%17%
Net Profit3642432848719666118156168237253
EPS in Rs20.5423.873.962.563.735.106.884.718.4011.1412.0016.9218.02
Dividend Payout %5%10%15%29%20%19%21%21%21%20%21%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-2024
YoY Net Profit Growth (%)16.67%2.38%-34.88%71.43%47.92%35.21%-31.25%78.79%32.20%7.69%41.07%
Change in YoY Net Profit Growth (%)0.00%-14.29%-37.26%106.31%-23.51%-12.71%-66.46%110.04%-46.58%-24.51%33.38%

has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2013-2014 to 2023-2024.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:16%
3 Years:23%
TTM:26%
Compounded Profit Growth
10 Years:20%
5 Years:20%
3 Years:26%
TTM:42%
Stock Price CAGR
10 Years:%
5 Years:74%
3 Years:76%
1 Year:119%
Return on Equity
10 Years:20%
5 Years:20%
3 Years:22%
Last Year:23%

Last Updated: Unknown

Balance Sheet

Last Updated: November 14, 2024, 7:59 pm

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital88535362686869697070140140
Reserves1111671481651853324164585646998531,0081,070
Borrowings14155696863681081623394237
Other Liabilities3849629298125157171194215259324319
Total Liabilities1592653183794145877098068431,0081,2211,5131,566
Fixed Assets18192256616868127200206240241238
CWIP33561117839100030
Investments86367525859619097120155394424
Other Assets130181224265284444497498546681826876904
Total Assets1592653183794145877098068431,0081,2211,5131,566

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +11113357897821513793264
Cash from Investing Activity +-9-6-5-18-85-108-143-82-58-216
Cash from Financing Activity +-5-0-2168-5-45-101-30-42-45
Net Cash Flow-457107-2-76-2925-73

Free Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Free Cash Flow39.001.00-2.00-31.00-3.0031.0051.00-14.00164.00158.00159.00227.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days19321022722717716215715110597128101
Inventory Days
Days Payable
Cash Conversion Cycle19321022722717716215715110597128101
Working Capital Days14315417017412912412011469749472
ROCE %38%27%24%14%21%25%26%16%27%27%24%27%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters55.16%55.16%55.16%55.16%55.16%55.16%55.16%55.16%55.16%55.07%55.01%54.30%
FIIs18.49%17.48%15.71%14.75%15.62%13.18%13.99%15.34%15.92%15.22%16.41%17.85%
DIIs7.16%7.61%7.48%6.80%6.06%8.05%8.18%8.22%9.23%9.73%9.71%9.96%
Public18.46%19.09%21.06%22.78%22.67%23.16%22.25%20.90%19.37%19.54%18.53%17.59%
Others0.73%0.66%0.59%0.51%0.49%0.45%0.43%0.38%0.31%0.43%0.37%0.30%
No. of Shareholders80,42078,21597,5231,03,6281,04,8041,00,07194,78687,57989,18199,3061,13,5941,11,135

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
HDFC Childrens Gift Fund - Regular Plan1,719,7001.94191.661,541,2022024-12-1811.58%
Tata Digital India Fund1,541,2021.43171.771,541,2022024-12-180%
JM Flexicap Fund484,8771.2854.041,541,2022024-12-18-68.54%
Tata Retirement Savings Fund - Progressive Plan - Regular Plan319,2001.6735.571,541,2022024-12-18-79.29%
ICICI Prudential Retirement Fund - Hybrid Aggressive50,0000.875.571,541,2022024-12-18-96.76%
JM ELSS Tax Saver Fund31,7501.953.541,541,2022024-12-18-97.94%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)18.0225.3223.6518.2810.56
Diluted EPS (Rs.)17.5025.0023.5018.1010.51
Cash EPS (Rs.)20.0028.8526.1521.1613.41
Book Value[Excl.RevalReserv]/Share (Rs.)87.53140.23116.6896.0579.47
Book Value[Incl.RevalReserv]/Share (Rs.)87.53140.23116.6896.0579.47
Revenue From Operations / Share (Rs.)88.98139.83112.0297.0595.64
PBDIT / Share (Rs.)24.0635.3432.2929.8618.17
PBIT / Share (Rs.)22.0631.8029.7626.9515.29
PBT / Share (Rs.)21.7631.1929.2626.1413.71
Net Profit / Share (Rs.)18.0025.3123.6118.2510.53
NP After MI And SOA / Share (Rs.)18.0025.3123.6118.2510.53
PBDIT Margin (%)27.0425.2728.8330.7619.00
PBIT Margin (%)24.7922.7426.5627.7715.98
PBT Margin (%)24.4522.3026.1126.9314.33
Net Profit Margin (%)20.2218.0921.0818.8011.00
NP After MI And SOA Margin (%)20.2218.0921.0818.8011.00
Return on Networth / Equity (%)20.5618.0420.2318.9913.24
Return on Capital Employeed (%)23.5921.1823.8326.3717.74
Return On Assets (%)14.9113.1314.8313.738.34
Long Term Debt / Equity (X)0.000.000.010.000.00
Total Debt / Equity (X)0.000.000.010.000.13
Asset Turnover Ratio (%)0.820.760.730.710.74
Current Ratio (X)3.442.793.133.062.19
Quick Ratio (X)3.442.793.133.062.19
Dividend Payout Ratio (NP) (%)13.9017.8514.9111.0628.70
Dividend Payout Ratio (CP) (%)12.5115.6613.469.5422.53
Earning Retention Ratio (%)86.1082.1585.0988.9471.30
Cash Earning Retention Ratio (%)87.4984.3486.5490.4677.47
Interest Coverage Ratio (X)80.4457.9264.3236.7811.51
Interest Coverage Ratio (Post Tax) (X)61.1742.4648.0323.487.67
Enterprise Value (Cr.)10732.422934.572969.441721.34618.47
EV / Net Operating Revenue (X)8.633.013.812.560.93
EV / EBITDA (X)31.9111.9213.228.324.93
MarketCap / Net Operating Revenue (X)8.933.224.162.921.07
Retention Ratios (%)86.0982.1485.0888.9371.29
Price / BV (X)9.083.213.992.951.29
Price / Net Operating Revenue (X)8.933.224.162.921.07
EarningsYield0.020.050.050.060.10

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of as of December 22, 2024 is: 1,577.15

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of December 22, 2024, is Undervalued by 0.20% compared to the current share price 1,574.00

Intrinsic Value of as of December 22, 2024 is: 1,837.25

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of December 22, 2024, is Undervalued by 16.72% compared to the current share price 1,574.00

Last 5 Year EPS CAGR: 16.49%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.67%, which is a positive sign.
  2. The company has higher reserves (475.08 cr) compared to borrowings (48.46 cr), indicating strong financial stability.
  3. The company has shown consistent growth in sales (399.92 cr) and profit (131.31 cr) over the years.
  1. The stock has a high average Working Capital Days of 119.75, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 161.25, which may not be favorable.
  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in :
    1. Net Profit Margin: 20.22%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 23.59% (Industry Average ROCE: 20.17%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 20.56% (Industry Average ROE: 16.6%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 61.17
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.44
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 80.4 (Industry average Stock P/E: 22.74)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Newgen Software Technologies Ltd. is a Public Limited Listed company incorporated on 05/06/1992 and has its registered office in the State of Delhi, India. Company’s Corporate Identification Number(CIN) is L72200DL1992PLC049074 and registration number is 049074. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company’s Total Operating Revenue is Rs. 710.79 Cr. and Equity Capital is Rs. 69.54 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareE-44/13, Okhla Phase 2, New Delhi Delhi 110020investors@newgensoft.com
http://www.newgensoft.com
Management
NamePosition Held
Mr. Diwakar NigamChairman & Managing Director
Mr. T S VaradarajanWhole Time Director
Ms. Priyadarshini NigamWhole Time Director
Mr. Subramaniam Ramnath IyerIndependent Director
Ms. Padmaja KrishnanIndependent Director
Mr. Kaushik DuttaIndependent Director
Mr. Saurabh SrivastavaIndependent Director

FAQ

What is the latest intrinsic value of ?

The latest intrinsic value of as on 22 December 2024 is ₹1577.15, which is 0.20% higher than the current market price of ₹1,574.00. The stock has a market capitalization of 22,083 Cr. and recorded a high/low of 1,629/626 during the current fiscal year 2024-2025. As of Sep 2024, the company has reserves of ₹1,070 Cr and total liabilities of ₹1,566 Cr.

What is the Market Cap of ?

The Market Cap of is 22,083 Cr..

What is the current Stock Price of as on 22 December 2024?

The current stock price of as on 22 December 2024 is 1,574.

What is the High / Low of stocks in FY 2024-2025?

In FY 2024-2025, the High / Low of stocks is 1,629/626.

What is the Stock P/E of ?

The Stock P/E of is 80.4.

What is the Book Value of ?

The Book Value of is 86.2.

What is the Dividend Yield of ?

The Dividend Yield of is 0.25 %.

What is the ROCE of ?

The ROCE of is 26.6 %.

What is the ROE of ?

The ROE of is 22.7 %.

What is the Face Value of ?

The Face Value of is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in . Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE